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On December 1, year 1, Gold Star Leasing Company leases equipment to Brick C0. with 5 equal annual payments of $80,000 each, payable beginning December

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On December 1, year 1, Gold Star Leasing Company leases equipment to Brick C0. with 5 equal annual payments of $80,000 each, payable beginning December 1, year 1. Brick C0. agrees to guarantee the $10,000 residual value of the asset at the end of the lease term. Brick's incremental borrowing rate is 10%, however it knows that Gold Star's implicit interest rate is 8%. Show supporting computations. Round to the nearest dollar. How much will Brick Co. capitalize (the i ilitial value) for the leased equipment on December 1, year 1 ? SHOW YOUR WORK Edit View Insert Format Tools Table 12pt Paragraph B IUAZT2

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